Confirmation of Ledger Accounts Printing in Tally
What is Confirmation of Accounts
In business, organisation sells goods to traders, pay advance to suppliers, Give Loan to borrowers. On such transactions, in the Books of such organisation, who becomes creditor, a Debit Balance in the ledger account of the Debtor appears, under the head Current Assets. Subsequently, the Debit Balance gets adjusted and finally squared off, when the customers pay for the goods purchased, supplier adjusts the Advance towards the supplies and services provided by them, borrower repay the borrowed money. Till the Balance is squared off, such debit balance is shown as Current Asset realisable, in the books of Creditor. Similar amount would appear in their books of Debtor, as current liability payable. to whom the money is owed. So, both the organisation would reconcile their books, confirming one holding as Current Asset and the other accepting it as Current Liability. The creditor sends a letter showing the Account Balance of Debtor in his books of Accounts, and the Debtor signs the statement as acceptance of the Balance stated in the Statement. This is known as Confirmation of Accounts.
Purpose of Confirmation of Accounts
Confirmation of Accounts, serves the purpose of acceptance of the figures in the Books of the respective parties, Debtor and Creditors. The Creditor, in a letter form, addressed to the Debtor, shows the Ledger Account Transaction and balance due, appearing in their books, and asks the Debtor, to confirm the Balance.
The auditor, or statutory authority, would verify the realisable status of such current Assets shown in the books of Creditor. So, the auditing authority would seek evidence of confirmation of acceptance lability by the Debtor.
Confirmation of Accounts Printing Steps
Here, we will gradually see how to Print Confirmation of Accountants . We will also see how to print Confirmation of Statements for Multiple parties in one shot. Apart from that, we will discuss about some novel ideas which no one has discussed but everyone wants, like, printing Confirmation of Statements for selected specific multiple Parties in one go. We will also explore ways of printing only Closing Balance of Party for Balance verification, instead of printing details of all transactions of the Debtor.
Format of Confirmation of Accounts
In normal practice, the Confirmation of Accounts shows only the Closing Balance, at the end of the close of the Financial Year in the books of Creditor. But, Tally treats Confirmation of Accounts as an alternate format of Ledger Account, not as a separate report. So, in Tally, there is no separate option of Confirmation of Accounts in Reports menu. In tally, Confirmation of Accounts is mere a special format of Ledger Account. Tally just provides a complete copy of Ledger Account, with a letter like text at the top, touted as Confirmation of Accounts.
Confirmation of Accounts Printing of selective Multiple Ledger Accounts in one shot
The steps described Printing of Confirmation of Accounts, for each Debtor separately.
Auditors pay attention on accounts of Debtors, having large balances, or having old over due outstanding. If a debtor is not paying old dues, but paying subsequent dues, this means that such old dues may not be realisable, and the Auditor will require confirmation of Accounts from the Debtor.
So, often organisation need to print Confirmation of Accounts, for certain specific ledger Accounts for specific handpicked Parties having high or old balances.
In Multiple Account printing, Tally does not provide specific multiple Item selection, as normally all modern application provide multiple selection of Item in a list.
In Tally, to print report for Multiple Ledger Accounts at a time, select Multiple Accounts Printing, you can opt to a specific Group , or can at best exclude / include some Groups. So, virtually, you can print Confirmation of Accounts for some selected Groups, with excluding / including specific Ledger Accounts.
Press Alt+P (Print) > Others. In the list of Multi Account Reports, select All Ledger Accounts > and press Enter.
Selection of Groups / Ledgers
In the Print sub-screen, press C (Configure) > set Select Groups/Ledgers to Yes
At Include these Groups, select te Groups for which you like to Print the Confirmation of Accounts. Normally, we would select Current Assets and then select Sundry Debtors, Loans and Advances etc, and then subgrous under it aa desired.
Having selected Groups under Include Groups, you may select any sub group which you may like to exclude from printing of Confirmation of Accounts. This way, you filter the desired Account Groups.
Having set the Account Groups under Exclude and Include options, you will get the list of Ledger Accounts under the Include Groups / Exclude Groups. Now select the ledger Accounts for which you do not like to print the Confirmation of Accounts.
Having set the desired Groups and finally set the desired Ledger at Include / Exclude columns, finally Accept Yes and then Print the Confirmation of Accounts.
To print all the Ledger accounts of a Group or Subgroup, this method allows to quickly select the desired Account Group Ledger Accounts. But to select Ledger Accounts scattered over several Accounts Groups (which normally happens in case of organisations having large number of personal accounts), it may be troublesome and tedious to filter out the desired Ledger Accounts. The ledger accounts conforming to the filter rules are not clearly visible. So, some ledger accounts may be left out while some undesired Accounts may get included
The method is not user friendly, like the easier ways to select desired objects from a list.
Depending on the Groups selected at Include use combination of single object, multiple ticks, single unticks, mass unticks, reverse selection etc. The filtered objects are visible with ticks unticks for correct actions.
Click Yes at Accept Yes / No.
Setting the default Text and Layout of Confirmation of Accounts
To customise the default layout and text of Confirmation of Accounts, Go to Gateway of Tally > Display More Reports>Ledger. At ledger Voucher screen, click Configure button. At Report type, select Confirmation of Accounts. At top right hand, select Show More options to get the list of all options. Press <enter> at Provide Confirmation Statement. The default layout and text appears. You may change the text of the desired section. The same text would appear in all Confirmation statement. You cannot change the text while printing of Confirmation of Accounts.
Set the other configuration options aa desired. options. You may set option to select Company Logo, if Logo image is set for Invoice and other documents printing.
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